H-1B Visa: Grace Period Rules & Tips

When you lose your H-1B visa job, you face two challenges: finding new employment and maintaining lawful status. Federal regulations allow H-1B visa holders up to 60 days to find a new employer, change of status, or make departure arrangements. The stakes are high: remaining beyond your authorized stay triggers unlawful presence, leading to three-year or 10-year reentry bans. A February 2025 DHS policy alert also broadened scenarios where Notices to Appear (NTAs) may be issued, increasing scrutiny on H-1B workers during the grace period.

Here's a breakdown of the rules, your options, and how to protect your immigration status after a layoff.

What is the H-1B grace period?

Your H-1B status is tied to your H-1B employment. When employment ends through layoff or cessation of employment, the basis for your nonimmigrant status ends with it. Federal regulation 8 CFR (Code of Federal Regulations) 214.1(l)(2) allows DHS to grant a discretionary grace period for workers in certain nonimmigrant visa classifications:

• E-1, E-2, and E-3 treaty workers
• H-1B and H-1B1 specialty occupation workers
• L-1 intracompany transferees
• O-1 individuals with extraordinary ability
• TN professionals under USMCA

The H-1B grace period is not automatic. USCIS determines whether to grant it when adjudicating a subsequent petition or application. The petitioner should request favorable discretion in their cover letter. Given increased scrutiny and reports of some H-1B nonimmigrant workers receiving NTAs, consulting with an immigration attorney early can help you evaluate your eligibility for various options. While this guide provides general information, it does not constitute legal advice and does not create an attorney-client relationship.

Important note: The grace period does not provide employment authorization. You cannot work unless you qualify under H-1B portability rules with a new employer.

The 60-day grace period after job loss

The most common H-1B grace period scenario occurs when H-1B employment ends before the petition's expiration date. In this situation, the beneficiary may be eligible for up to 60 consecutive calendar days to take action, or until the authorized validity period ends, whichever is shorter.

When the grace period starts

The 60-day grace period starts the day after your last day of employment, based on the last day for which you received wages. Severance payments do not extend the start date. To protect yourself, maintain records of your last day, including termination letters and resignation confirmations. Keep evidence of your new job search activities such as applications submitted and interview confirmations.

The I-94 limitation

Your grace period cannot extend beyond the end date on your I-94 record. If your H-1B approval notice shows an expiration date 25 days after job loss, you have a 25-day grace period, not 60 days. Check your I-94 to confirm your authorized stay end date.

What you can and cannot do

During the 60-day grace period, certain activities are permitted while others are prohibited:

Travel is particularly important to understand: departing the U.S. ends the grace period immediately. If you leave, you must obtain a new nonimmigrant status or a visa for re-entry.

The 10-day grace period before and after validity

A separate 10-day grace period applies at the beginning and end of your H-1B validity period. H-1B nonimmigrant workers may receive up to 10 days before the petition start date and 10 days after the end date shown on the approval notice.

U.S. Customs and Border Protection (CBP) officers determine whether to grant this 10-day grace period at admission. Check your I-94 to confirm. You cannot work during this window. Do not confuse it with the 60-day grace period following cessation of employment.

The 180-day grace period myth

There is no 180-day grace period for H-1B visa holders. This misconception stems from confusion with the I-140 portability rule, which allows adjustment of status applicants to change employers after Form I-485 has been pending 180 days. That rule applies to green card applicants, not terminated H-1B nonimmigrant workers seeking to maintain lawful status. Plan based on the current 60-day maximum under U.S. immigration law.

Your options during the grace period

The 60-day window provides time to take action, and several pathways can extend your authorized stay beyond that period. Acting quickly is critical because processing times, documentation requirements, and new employer coordination all take time.

Option 1: H-1B transfer (portability)

H-1B transfer through portability is the most direct path. When a new employer files a nonfrivolous H-1B petition (Form I-129) requesting an extension of stay, you can begin working immediately upon USCIS receipt. This portability provision is unique among visa categories. The new employer must have a certified Labor Condition Application before filing, which typically takes seven business days.

Option 2: Change of status

If finding a new employer is not possible, you may file for a change of status to another nonimmigrant classification:

• H-4 dependent status: If your spouse holds H-1B status. Certain H-4 spouses may qualify for employment authorization with an approved I-140.
• F-1 student status: Requires acceptance to a SEVP-certified school. This student visa option allows you to pursue education while maintaining lawful status.
• B-1/B-2 visitor status: You can search for a new job but cannot work in this visitor status.
• O-1 visa: For those with extraordinary ability in their field.
• TN visa or L-1 visa: Depending on your eligibility and qualifications.

Timely filing stops the accrual of unlawful presence while the application is pending, even after the grace period expires. Falling out of status without a pending application means you may be considered out of status.

Option 3: Adjustment of status

If you are eligible for a green card and your priority date is current, you can file Form I-485 (adjustment of status) during the grace period. This employment-based path requires an approved I-140 or self-petition eligibility under EB-1A or EB-2 NIW. Once pending, you can apply for an Employment Authorization Document (EAD). After 180 days, you gain portability to change employers.

Option 4: Compelling circumstances EAD

Workers with an approved I-140 who face compelling circumstances but cannot yet file for adjustment of status (because no visa is currently available) may apply for a compelling circumstances EAD. This provides up to one year of employment authorization with any employer.

This option requires demonstrating compelling circumstances and is discretionary. Workers who use a compelling circumstances EAD lose their H-1B nonimmigrant status but remain in a period of authorized stay.

Option 5: Depart the U.S.

If no viable option exists within 60 days, you should depart the U.S. to avoid accruing unlawful presence. If your H-1B employment ended involuntarily through layoff, your employer must pay the reasonable costs of your return transportation to your last place of foreign residence.

Comparing your options

Here’s a quick look at the timelines, work rules, and complexity of each visa option.

Use this table to compare your options and choose the path that best fits your situation.

What happens to H-4 dependents

Your spouse and children under 21 in H-4 status face the same timeline. Their immigration status is tied to yours as the H-1B principal beneficiary. If you fall out of status, they do too.

During the grace period, H-4 dependents maintain status as long as you maintain yours. If your spouse has an EAD, that employment authorization remains valid. Dependents can file for a change to F-1 student visa status or their own H-1B if they find qualifying employment. Children under 21 cannot obtain employment authorization under H-4 status.

Find the Right Visa Support

The H-1B grace period process involves coordination across multiple government agencies, strict documentation, and precise timing. U.S. Citizenship and Immigration Services (USCIS) adjudicates petitions and change of status applications. The Department of Labor certifies LCAs for new employment. Mistakes in filing, timing, or documentation can result when you fall out of status, unlawful presence accrual, or removal proceedings. Many H-1B workers seek support from a law firm or immigration services provider to avoid these pitfalls.

Lighthouse helps H-1B workers evaluate their options after job loss, including H-1B transfer eligibility, change of status pathways, and adjustment of status requirements. Our platform combines experienced case managers with technology built for U.S. immigration workflows, providing eligibility diagnostics, documentation guidance, legal review to strengthen petitions, and deadline coordination for workers and their families. Contact us to learn more about your options.

Start your H-1B evaluation today.

Frequently asked questions

What happens after the 60-day grace period ends?

If you take no action during the 60-day grace period, you must depart the U.S. Remaining beyond this window without a pending H-1B petition or application means you begin accruing unlawful presence and are out of status. Accumulating 180 days but less than one year of unlawful presence triggers a three-year bar from reentry to the U.S. One year or more results in a 10-year bar. The exception is if you timely filed a nonfrivolous petition or application during the grace period, which extends your authorized stay while pending.

How long can I stay after my H-1B expires?

The answer depends on your circumstances. If your H-1B employment ends early, you may receive up to 60 days (or until your I-94 end date, whichever is shorter). If your validity period ends naturally without early cessation of employment, you may receive up to 10 days to prepare for departure. With a pending petition or extension of stay application filed before your grace period ends, your authorized stay continues during adjudication.

Can I stay in the U.S. with an expired H-1B visa?

The visa stamp in your passport and your H-1B status are different things. The H-1B visa stamp is only needed for reentry to the U.S.; you can remain in lawful status with an expired visa stamp as long as your I-94 and status remain valid. You cannot stay with expired status unless you have a timely filed, nonfrivolous pending petition or application extending your period of authorized stay.

What is the $100,000 rule for H-1B?

In 2025, an executive rule introduced a $100,000 fee for new H-1B entrants seeking visa stamps abroad. This affects H-1B workers who must travel outside the U.S. and apply for a new visa before reentering. It does not directly impact the grace period itself, but if you cannot file for extension of stay from within the U.S. and must process your visa at a consulate, your new employer faces this additional cost.

When does the H-1B grace period start?

The grace period starts the day after your last day of employment, determined by the last day for which you received wages or salary. Severance payments do not affect this calculation. If you are laid off on Friday and your last paycheck covers through Friday, the grace period starts Saturday.

Can I work during the grace period?

No, H-1B employment is prohibited during the grace period unless you qualify for portability. If a new employer files a nonfrivolous H-1B petition on your behalf, you can begin working immediately upon receipt of the petition by USCIS. Working without authorization violates your status and can result in the denial of future applications.

Does the grace period apply if I quit voluntarily?

Yes. The 60-day grace period applies to both voluntary and involuntary cessation of employment. The same rules and timelines apply whether you were laid off, terminated, or resigned. If you leave voluntarily, your petitioner is not required to pay your return transportation costs.

Can I travel during the grace period?

No. Departing the U.S. ends the grace period immediately. If you leave, you cannot re-enter on your previous H-1B status and would need new H-1B approval or another visa. Consult an immigration attorney before international travel.

Can I stay 28 days after my visa expires?

If your H-1B employment ended and you have remaining time on your I-94, you may be eligible for a grace period. The 60-day grace period (or remaining validity period, whichever is shorter) applies after job loss. If your visa expires but you have 28 days remaining on your I-94, you can stay those 28 days while taking action to find a new job, transfer to a new employer, or depart.

What is the 3-for-1 rule for H-1B?

The "3 for 1 rule" refers to the education equivalency standard under immigration law where three years of progressive work experience in a specialty can substitute for one year of college education. This applies when determining H-1B eligibility, not to the grace period. If you have 12 years of relevant experience, it may be equivalent to a four-year bachelor's degree for H-1B qualification purposes with USCIS.